Dow -0.60% 17,791.17 / -107.67
Nasdaq -0.42% 5,029.97 / -21.13
S& P -0.46% 2,084.43 / -9.68

 

Stocks fell on Wall Street on Monday as investors fretted over the consequences of a possible debt default by Greece, but talk of multi-billion dollar healthcare deals buoyed shares in the sector, cutting into the market' s loss.

After Sunday' s breakdown of the cash-for-reform talks between Athens and its creditors, Greece has two weeks before facing a 1.6 billion euro repayment due to the International Monetary Fund that could leave it out of cash. On Monday, positions among negotiators hardened.

Indexes had opened sharply lower on the Greek developments but cut losses through most of the session.

" This market is moving toward the position of an increasing probability that there is going to be a Greek default. That&rsquo s what started us off so badly," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

" We' ve never had a country part of the euro currency system default, so we don' t really know what the impacts are going to be. Away from the consensus you got to become a little cautious thinking what the derivative reactions are going to be."

The Dow Jones industrial average .DJI fell 107.67 points, or 0.6 percent, to 17,791.17, the S& P 500 .SPX lost 9.68 points, or 0.46 percent, to 2,084.43 and the Nasdaq Composite .IXIC dropped 21.13 points, or 0.42 percent, to 5,029.97.

 

HEALTHCARE LENDS SUPPORT

Cigna (CI.N) shares jumped as much as 19.4 percent to a record high of $164, buoying the health sector, after the Wall Street Journal reported Cigna rebuffed a takeover offer from rival Anthem Inc (ANTM.N) that valued it at about $45 billion. Cigna closed up 11.7 percent to $153.43.

The WSJ story said UnitedHealth (UNH.N) could be also eyeing deals with Cigna or Aetna (AET.N). UnitedHealth shares rose 1.1 percent to $118.98 and Aetna added 4.4 percent to $121.01. Humana (HUM.N) previously seen as a target from Cigna, fell 2.8 percent to $206.58.

" This is another indication of the growing importance of clout, or better negotiating power, in the healthcare market," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, which counts Aetna among its largest holdings.

" You' re seeing insurers combine for more power to negotiate with hospitals and pharmaceutical companies."

A deal that was announced involved drugstore operator CVS Health Corp (CVS.N) buying Target' s (TGT.N) pharmacies and clinics. The $1.9 billion deal should help CVS bargain with drugmakers for lower prices. CVS shares edged up 0.4 percent to $102.58 while Target gained 1.2 percent to $80.45.

Shares of United Technologies (UTX.N) weighed the most on the Dow Industrials, down 2.5 percent at $114.61. It said it is exiting the helicopter business and would decide whether to spin off or sell its $8 billion Sikorsky unit, the U.S. military' s largest helicopter maker.

Declining issues outnumbered advancing ones on the NYSE by 1,983 to 1,075, for a 1.84-to-1 ratio on the downside on the Nasdaq, 1,639 issues fell and 1,149 advanced for a 1.43-to-1 ratio favoring decliners.

The S& P 500 posted 5 new 52-week highs and 12 new lows the Nasdaq Composite 98 new highs and 55 new lows.

About 5.84 billion shares changed hands on U.S. exchanges, below the 5.98 billion daily average so far this month, according to BATS Global Markets.

 

What Kind of Economic Conservative Is Jeb Bush?

He' s being pulled in two directions: Some Republicans want him to stress cutting rates for high earners. Others want to see more aid to families with children.

By Peter Coy - 15 Jun 2015 8:05:03 am

June 15 -- Jeb Bush  will attempt to follow his brother and father into the nation&rsquo s highest office  when he officially announces  Monday  that he&rsquo ll run for president of the United States. Bloomberg' s Phil Mattingly reports on &ldquo Bloomberg Surveillance.&rdquo  

 

 

 

Five Things Everyone Will Be Talking About Today

A busy start to the week, get caught up here

By Jonathan Ferro and Lorcan Roche Kelly - 15 Jun 2015 5:49:57

 

Dow -0.78%  17,898.84  /  -140.53 
Nasdaq -0.62%  5,051.10  /  -31.41 
S& P -0.70%  2,094.11  /  -14.75

 

U.S. stocks fell on Friday as Greek debt talks hit a stalemate and as concern over how soon the Federal Reserve might raise interest rates kept investors cautious.

Energy shares dropped as oil prices fell for a second straight day. The energy index .SPNY, down 1.2 percent, led the day' s decline, followed by a 1.1 percent drop in the healthcare index .SPXHC.

Upbeat consumer sentiment and other data added to views the economy may be regaining momentum, which increased anxiety for investors ahead of next week' s Federal Open Market Committee meeting, the U.S. central bank' s last meeting before September.

Also of concern, a day after the International Monetary Fund quit bailout talks with Greece, EU officials said they had held their first formal discussions on the worst-case scenario for the country.

" It' s the Greek situation again, and that' s been played out on a day-to-day basis, where you had a huge rally followed by a decline, predicated on whether they are coming closer or moving further from a resolution over this situation," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

The Dow Jones industrial average .DJI fell 140.53 points, or 0.78 percent, to 17,898.84, the S& P 500 .SPX lost 14.75 points, or 0.7 percent, to 2,094.11 and the Nasdaq Composite .IXIC dropped 31.41 points, or 0.62 percent, to 5,051.10.

For the week, the Dow was up 0.3 percent, the S& P 500 was up 0.1 percent, while the Nasdaq Composite fell 0.3 percent, its third straight week of declines.

U.S. consumer confidence surged in early June. The University of Michigan' s consumer sentiment index rose to 94.6 from 90.7 in May.

The upbeat report capped a week of strong economic data and was the latest indication that growth was regaining momentum after a sluggish start to the second quarter.

That added to investor caution, " particularly in light of the fact that we' re just days ahead of the Fed meeting," Luschini said.

Higher rates will tighten the flow of easy money. Economists and top Wall Street banks expect the Fed to raise rates in September, in what could be its first hike in almost a decade.

Twitter Inc (TWTR.N) shares were up 0.2 percent at $35.90, a day after Chief Executive Officer Dick Costolo said he was stepping down.

Among the biggest decliners in health care, shares of Eli Lilly (LLY.N) ended down 2.7 percent at $84.21. It hit its low for the session and volume spiked after Reuters reported the Alzheimer' s Association may not offer an early look at trial data on an experimental drug from Eli Lilly.

News of the impending release had led to a jump in the company' s shares. Eli Lilly' s stock had gained 10.3 percent from Monday' s close to Thursday' s finish.

Declining issues outnumbered advancing ones on the NYSE by 1,945 to 1,075, for a 1.81-to-1 ratio on the downside on the Nasdaq, 1,586 issues fell and 1,146 advanced for a 1.38-to-1 ratio favoring decliners.

The benchmark S& P 500 index posted five new 52-week highs and eight new lows the Nasdaq Composite recorded 73 new highs and 28 new lows.

About five billion shares changed hands on U.S. exchanges, compared with the 6.1 billion daily average for the month to date, according to data from BATS Global Markets.